a catalinbread super chile picoso, or maybe even the sagrado poblano picoso for your tele, will fatten your sound right up.
As for a cheap but good sounding distortion, I'd get a boss DS-1 off ebay (~$30) and get it modded by indyguitarist (~$50).
Well, since everyone else here is doing it, and I'm one to jump off a cliff when all my friends do, here's my rig:
Tonebone boneyard pedalboard
Vox V847 Wah
Boss PS-5 (Coming soon)
T.C. Jauernig Diabolical Gristle Tone Manipulator OD pedal
Tonebone Hot British
ISP Noise Decimator
Catalinbread Sagrado Poblano Picoso
Catalinbread Super Chile Picoso
Off my board:
Boss RC-20XL (used for practising)
Dunlop Original Crybaby
Monte Allums Modded SD-1 (SD-808 mod)
I use lava cables